Singapore Higher Bunkering Premiums & Delays Making Shipowners Look Elsewhere

38

According to an Argus Media report, low spot availability of high-sulphur marine fuel oil (HSFO) and 0.5pc sulphur marine fuel oil in Singapore has caused severe bunkering delays and prompted some shipowners to bunker in other ports despite price premiums.

Extremely Tight Situation

A bunker supplier said marine fuel oil availability has been “extremely tight” in Singapore, and that there are alternative bunkering ports to the east and west of the port. The supplier’s earliest expected delivery dates in Singapore are 5 December for 0.5pc fuel oil and 4 December for HSFO. Marine gasoil (MGO) is not tight and available for next day delivery.

High Premium Drives up Demand Nearby

It is still possible to fit vessels in for bunkering sooner in Singapore, “but premiums are high,” a shipowner said.

Suppliers in other regional bunkering locations such as Port Klang in Malaysia have seen demand increase as a result. A trader sold 4,000t of marine fuels in Port Klang last week, which was significantly more than it typically does.

  • High-sulphur 380cst marine fuel oil (HS380) and 0.1pc sulphur MGO are around $7-17/t and $55/t more expensive in Port Klang than in Singapore, respectively. 
  • But 0.5pc fuel oil is just $2-7/t more expensive in Port Klang, where it is more readily available.

Shipowners Going To Nearest Ports

A shipowner that could not get the prompt delivery date it wanted in Singapore two weeks ago bought HS380 for a $7/t premium in Port Klang, which was convenient as the vessel was heading west anyway.

Another shipowner had also heard of Port Klang as an alternative to Singapore, but has not had to bunker there yet as its standard practice is to order its fuel 10 days ahead in Singapore.

Did you subscribe to our daily newsletter?

It’s Free! Click here to Subscribe!

Source: Argus Media

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.